Injective price soars as the new INJ 3.0 era begins

Injective (INJ) has been on an impressive uptrend, largely fueled by the recent community-backed decision to transition from Injective 2.0 to Injective 3.0. Over six consecutive days, the price of Injective surged, hitting an intraday high of $26, its highest level since December 18, 2024. This marks a 40% increase from the token’s lowest point this year, signifying significant positive momentum.

The core of this rally stems from the new Injective 3.0 upgrade, which introduces deflationary features aimed at making the platform more resilient to inflationary pressures. A key change in the upgrade is the adjustment of the token supply based on staked INJ, allowing real-time adaptation to staking activity. This shift is expected to increase the deflation rate by 400%, reducing inflationary risk while potentially increasing staking rewards for INJ holders.

Injective’s staking ecosystem is already one of the most rewarding in the cryptocurrency space. Currently offering a staking yield of 10.68% with a staking ratio of 56%, it stands out in comparison to other prominent cryptocurrencies like Ethereum (ETH), which offers a 3.13% yield, and Solana (SOL) and Sui, which provide 7.06% and 2.81% yields, respectively.

In addition to the 3.0 upgrade, the price surge is supported by a rise in the total value locked (TVL) in Injective’s decentralized finance (DeFi) network, which has now exceeded $55.95 million—the highest level since June of the previous year. Key decentralized applications (dApps) like Hydro, Helix, Neptune Finance, and DojoSwap are driving much of this growth.

However, Injective still faces challenges, particularly in attracting developers to its ecosystem. While newer layer-1 and layer-2 projects such as Sui, Aptos, and Base have drawn billions of dollars into their ecosystems, Injective continues to struggle in this area, despite backing from high-profile investors like billionaire Mark Cuban.

Price Analysis

Looking at the technicals, the 4-hour chart shows that INJ has been on a strong recovery path since its low of $18.42 on December 16. The token has breached key resistance levels, including the neckline resistance at $23.80, and crossed the Woodie pivot point at the same level.

The Percentage Price Oscillator (PPO) is now above the zero line, signaling positive momentum. This suggests that INJ could continue its upward trajectory, with the next resistance target being around $29. This level is near the 61.8% Fibonacci retracement point at $28.87.

However, should the price fall below the pivotal $23.80 mark, the bullish outlook would be invalidated, and a potential downside move could be in play.